MYR Group Inc. Announces First Quarter 2025 Results

Core Viewpoint - MYR Group Inc. reported solid financial results for the first quarter of 2025, with increases in revenue, net income, and consolidated gross profit compared to the same period in 2024, reflecting strong demand in the electric utility infrastructure sector [2][3]. Financial Performance - First quarter 2025 revenues reached $833.6 million, an increase of $18.0 million from the first quarter of 2024 [3][9]. - The Transmission and Distribution (T&D) segment generated revenues of $461.8 million, a decrease of $28.6 million from the previous year, primarily due to a $44.1 million drop in transmission project revenues [3]. - The Commercial and Industrial (C&I) segment reported revenues of $371.9 million, an increase of $46.7 million from the first quarter of 2024 [3]. - Consolidated gross profit increased to $96.9 million, up from $86.2 million in the same quarter of 2024, with gross margin rising to 11.6% from 10.6% [4]. - Net income for the first quarter was $23.3 million, or $1.45 per diluted share, compared to $18.9 million, or $1.12 per diluted share, in the prior year [8][9]. Backlog and Market Activity - As of March 31, 2025, MYR Group's backlog was $2.64 billion, an increase of $214.9 million, or 8.9%, from $2.43 billion reported a year earlier [10]. - The T&D backlog stood at $872.5 million, while the C&I backlog was $1.77 billion, indicating strong future project commitments [10]. Cost and Expense Management - Selling, general and administrative expenses rose to $62.5 million, slightly up from $62.2 million in the first quarter of 2024, primarily due to increased employee-related expenses [5]. - Interest expense increased to $1.4 million, attributed to higher average outstanding debt balances, although offset by lower interest rates [6]. Tax and Earnings Metrics - Income tax expense for the first quarter was $9.5 million, with an effective tax rate of 28.9%, compared to $4.2 million and 18.0% in the prior year [7]. - EBITDA for the first quarter was $50.2 million, compared to $39.8 million in the same quarter of 2024, reflecting improved operational performance [8][27].